10 Most Volatile Stocks To Buy Right Now

2. Tenet Healthcare (NYSE:THC)  

Number of Hedge Fund Investors: 64  

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Tenet Healthcare (NYSE:THC) is a leading healthcare services company operating a network of hospitals and outpatient centers across the United States.

Tenet Healthcare’s (NYSE:THC) deleveraging strategy, which began in 2023, has reduced its net debt from over $14 billion to just over $9 billion, resulting in a leverage ratio that has declined from 4 times to 2.5 times. This reduction in debt has not only improved the company’s financial health but also freed up resources to invest in its core business. The company’s divestment activity has also been successful, with the sale of several underperforming hospitals and assets generating significant proceeds. For example, the sale of its 70% ownership interest in Brookwood Baptist Health in October yielded after-tax proceeds of $790 million, further reducing leverage to just over $9 billion.

In addition to its financial improvements, Tenet Healthcare (NYSE:THC) has also demonstrated strong operating momentum. In the first half of the year, the company reported a 7% increase in sales, with organic growth driven by volume expansion and improved pricing. Adjusted earnings per share have doubled to $5.53, while EBITDA has increased by 10% to $3.9 billion. The company’s guidance for 2024 has also been revised upward, with sales expected to reach $20.8 billion and adjusted EBITDA expected to reach $3.9 billion. These improvements have been driven by the company’s focus on cost control, operational efficiency, and strategic investments in its core business.

Tenet Healthcare (NYSE:THC) has been on a remarkable journey, transforming itself from a highly leveraged healthcare company to a more streamlined and efficient operation.